Chinese shares closed sharply down Thursday after three days of rises, over concerns that the central bank will further tighten money supply.
The Shanghai Composite Index closed down 1.71 percent, or 46.94 points, at 2,703.35.
The Shenzhen Component Index dropped 2.11 percent, or 247.90 points, to 11,513.20.
Combined turnover expanded to 157.6 billion yuan (24.31 billion U.S. dollars) from 149.6 billion yuan on the previous day.
Losers outnumbered gainers by 830 to 78 in Shanghai and 1,135 to 117 in Shenzhen.
B shares, denominated in overseas currencies including U.S. dollars and HK dollars, slumped the most.
Analysts said the B shares were pushed down on the expectation of the introduction of an international board. The proposed international board on the Shanghai Stock Exchange will allow foreign companies to list their shares in China and be yuan-denominated.
Huatai Securities analyst Chen Huiqin, however, believed the slump in B shares was not related to the prospect of an international board, but triggered by a capital crunch and expectations that the central bank would raise the reserve requirement ratio over weekend.
Property stocks dropped after the central bank on Wednesday denied a media report that home purchase limits would be relaxed.
China Vanke Co., the country's biggest listed property developer, dropped 2.47 percent to 7.90 yuan per share. Poly Real Estate Group Co., the country's second-largest developer by market value, slumped 2.52 percent to 9.30 yuan per share.
Sinopec, the country's largest oil refiner, slid 1 percent to 7.96 yuan per share. China Shenhua Energy Co., the country's largest coal producer, dropped 1.12 percent to 28.15 yuan per share.
